Current environment not the best environment to pick up bargains: KR Choksey

KR Choksey, Chairman of KR Choksey Securities gives his outlook on the markets in a chat with ET Now.

ET Now: For someone who has seen many bull market and bear market cycles, do you think the current environment is a good time to go and pick up bargains?

KR Choksey: Current environment is not a happy environment because action on government's part is not taking place. But, the recent hike in petrol prices gives us a hope that more actions will come from the government and that will help the economy to revive.

Foreign direct investment in insurance, retail, aviation have to be increased. We are looking at GST as well. If more decisions are taken by the government, the market will improve. So, it is the action plan of the government that is important at this point of time. Due to the devaluation of rupee, certain industries which were suffering due to import competition, like BHEL, Thermax and Larsen are very much down due to competition from China.

Even electrical equipment manufacturers are also suffering competition from China. So devaluation of the rupee by 15% to 20% will give natural protection to these companies and the prospects of these companies will improve.

Similarly, those companies which are involved in exports, will also get some advantage. Companies like Bajaj Auto which is exporting more than 30% of its production, will get advantage at this point of time and the bottom line should improve in time to come.